TradeStalker's
R.B.I. Trader's Update
1 / 31 / 2010
(Published Since 1996)
...............................................
Dateline: 5:46 pm eastern time, 1/31/2010
The ES rallied to the 1092.50-1093.00 resistance zone in the
first 30 minutes on Friday, and looking to short early
strength, that made a great reward/ risk entry. The move
stalled out and reversed and dropped 15+ points to 1077.75
by noon (we had updated support at 1078-1077). There was a
bounce off of that level, but it stopped right at the
1084.50-1085.00 updated resistance and fell 6.75 points to
1077.25 support and bounced... right to the 1081.50
resistance. So much for a double bottom, that support broke
on the 3rd try and a 14 point drop to 1067.50 followed. That
1068.00-1067.00 zone was at the last target/support for
Friday, and a decent bounce of 7.75 points on the ES
followed. However, that move was sold and the ES dropped
8.75 points to 1066.50, as only the closing bell could stop
the bleeding on Friday.
From the highs made on January 19th, the Dow lost 686
points, the ES lost 80.50 points, and the NQ lost 164
points. That is quite a move over just 8 trading days. The
volatility has been great, as there was at least 32 swings
of 4.00 or more points on the ES last week. The average
daily range for the ES over the last 8 days is 19.81 points.
This environment is emotionally charged up, so the
volatility should continue. The daily indicators went back
to extreme oversold condition, but lately that hasn't
mattered. A closing Trin around 3.00 is what's missing from
having a capitulation bottom.
Pretty soon the market should attempt to rally back, but it
likely will not hold. If the market can get over the initial
resistance areas and not quickly reverse, then the downside
momentum should be lessening and then the 1084.00-1084.50
area on the ES would be a key resistance. If the market can
get over that area and not fizzle, then a move back towards
the 1097-1098 area could be possible over a day or so.
However, if the initial resistance areas are not cleared and
held on a pullback, then the downside should continue as
bounces are still being sold. If the downside continues,
then the 1062.25-1060.50 zone could be in the cards. If the
market drops further, and cannot hold that area, then the
downside could gather momentum and head towards the 1043
area on the SP500 cash on this leg down.
March 2010 SP futures resistance
symbols: emini = esh0 / big contract =sph0
1074.50-1075.25
1078.00-1078.50
1084.00-1084.50
1088.50-1089.00
March 2010 SP futures support
symbols: emini = esh0 / big contract =sph0
1066.50-1065.75
1062.25-1060.50
1058.25-1057.50
March 2010 Nasdaq futures resistance
symbols: emini = nqh0 / big contract = ndh0
1745.50-1746.50
1753.00-1754.00
1762.50-1763.25
1768.75-1770.00
March 2010 Nasdaq futures support
symbols: emini = nqh0 / big contract = ndh0
1733.00-1731.75
1721.50-1719.75
1715.50-1714.50
March 2010 Dow futures resistance
symbols: emini = ymh0
10060-10063
10076-10079
10127-10132
10154-10156
March 2010 Dow futures support
symbols: emini = ymh0
9996-9992
9947-9943
9921-9918
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Good Trading,
Mike Reed
TradeStalker.com
Copyright (c) 2010 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
This publication's primary focus is trading the index
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trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
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Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
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research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
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SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
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